Doi Tung Lodge is located in the area that once served as the office and accommodation of the 31st Watershed Conservation Unit of the Royal Forest Department. During the early days of the Doi Tung Development Project, the late Princess Mother would spend months at the Doi Tung Royal Villa to oversee the operation of the Project. Occasionally, His Majesty the King and other members of the royal family would pay her a visit. A new villa was built in the area to accommodate the royal entourage and employees of the Project. However, the new villa was only completed in 1997, after her death. It was turned into a tourist lodging following the gracious permission of Her Royal Highness Princess Maha Chakri Sirindhorn. The proceeds from this enterprise go to the maintenance of the lodging and other amenities.

The Doi Tung Lodge provides another source of jobs; local people learn the hospitality business, including aspects such as reception, services, food and other management work. It offers local people an additional job alternative without having to leave their home in search of work elsewhere providing a good source of income and stability.